Axiom Company provides automobiles for four of its employees, each of the individuals uses their car for
Question:
Axiom Company provides automobiles for four of its employees, each of the individuals uses their car for employment related travel, they also use them for personal matters. The portion of personal use varies considerably among the four individuals. The details related to each of these cars, including the amount of personal and employment related travel recorded by the executives, are as follows: Employee A is provided with a BMW which has been purchased by the Company at a cost of $78,000. The car was new last year, and, during the current year, it was driven a total of 38,000 kilometers. Of this total, only 6,000 kilometers were for employment related purposes, while the remaining 32,000 were for personal travel. Operating costs totaled $.50 per kilometer and, because he made an extended trip outside of North America, the car was used for the full year during the current year. Employee B is provided with a Tesla. The Company leases this vehicle at a cost of $1000 per month which includes the $100 for the insurance and HST. During the current year, the car was driven a total of 60,000 kilometers, with 55,000 of these kilometers being for employment- related purposes.
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr